EXTERNAL FINANCIAL AUDIT

Oxfam is a global movement of people who are fighting inequality to end poverty and injustice. Across regions, from the local to the global, we work with people to bring change that lasts.

1.    BACKGROUND AND CONTEXT

The Oxfam in Asia regional platform contributes to and implements Oxfam’s Global Objectives and Strategy and leads the implementation of Oxfam in Asia’s Strategic Framework by providing vision and strategic direction to all of Oxfam’s work in Asia. This includes Oxfam’s humanitarian responses and the localization of humanitarian leadership, long-term development programming, and influencing work. Responsible and accountable for the strategic direction and effective management of the programming in Asia, effective management of financial and human resources in line with Oxfam policy, and providing high-level support and representation for advocacy, fundraising, and any other representational purposes in support of Oxfam’s work and interests while ensuring gender justice and feminist principles are adopted.

2.    PROGRAM OVERVIEW

The Mekong Regional Water Governance Program (MRWGP) focuses on inclusive and equitable water governance, addressing climate change, water security, and social accountability. MRWGP oversees regional projects funded by the Australian Department of Foreign Affairs and Trade (DFAT) and the Swiss Agency for Development and Cooperation (SDC), ensuring sustainable water governance across Cambodia, Thailand, Lao PDR, Vietnam, and Myanmar. The Mekong Inclusive Water Governance and Climate Resilience Program 3 (IP3) (2025-2029) integrates water governance and climate resilience for regional policy impact. The program aims for More sustainable and resilient livelihoods of riparian communities in the Mekong Sub-region and prioritizes three interconnected pillars. Pillar 1: Gender Equality, Disability and Social Inclusion (GEDSI) and Feminist Influencing; Pillar 2: Inclusive Water Resource Governance; Pillar 3. Climate Resilient Communities.

3.    PROJECT GOVERNANCE STRUCTURE

Oxfam Australia (OAU), as the lead applicant for IP3 is the contract holder with DFAT and SDC; OAU is responsible for contract management, compliance, and providing technical support as needed. The IP3 project is implemented by Oxfam International in Asia through the Mekong PMU based in Phnom Penh. The PMU oversees implementation by Oxfam Country Offices in Lao PDR, Myanmar, Vietnam, and Cambodia, and through regional partners in Thailand. Project management, implementation, and coordination follow Oxfam International’s established standards, operational procedures, and agreements. Oxfam in Cambodia is the legal entity, holding legal responsibility and due diligence for the operation of the Mekong PMU as well as provides the business services and back-office support in accordance with its executing affiliate.

4.    PROJECT AUDIT

The purpose of this ToR is to seek a qualified audit firm to carry out an annual project financial audit of the IP3 Project, throughout the duration of the project period between 1 April 2025 and 30 June 2029, and as per the audit schedule outlined. The audit methodology will be in accordance with the requirements specified in the SDC Financial Audit ToR, in Annex 1.

5.    PROJECT BUDGET

The total IP3 project funded by DFAT and SDC combined for the period of 1 April 2025 to 30 June 2029 is 9.73 million USD. Out of this, DFAT contributes 10 million AUD (or the equivalent of 6.73million USD) and SDC contributes 3million USD. The budget breakdown by year, by implementing entity is as below.

Note: Indirect cost recovery (overhead cost) is allocated for Oxfam Australia (OAU).

6.    AUDIT SCHEDULE

The audit is to be performed based on Annex 1, following the cycle below:

7.    AUDIT FEES

The audit firm shall estimate the audit fee for the first audit cycle based on the forecasted expenditures for Years 1 and 2. Audit fees for Years 3, 4, and 5 shall be determined based on the approved budget. If the budget is revised during implementation, the audit fee shall be recalculated using the most current budget information available.

The fee shall include all expected travel, out-of-pocket, and applicable tax expenses.

The payment will be made per each cycle in 2 parts, when starting the fieldwork and after completing the report. The percentage of each part will be agreed and input in the agreement.

The details of the application process can be accessed here:

https://oxfam.box.com/s/qlz0x0bvvg3sj5fm0tldqyyhsdlfig47